Impact of Foreign Direct Investment on Gross Domestic Product

Misbah Nosheen

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International Business and FDI Monetary Policy and Economic Impact Economic Growth and Productivity

Abstract

Abstract: The paper investigates the impact of foreign direct investment on Growth (GDP) for Pakistan. It studies a long run relationship between the foreign direct investment and gross domestic investment in Pakistan. By using cointegration analysis, we demonstrate that there exists a long run relationship between the two variables. The GDP is taken as dependent viable while FDI is considered as independent variables. The data used for this analysis is varying from 1980 to 2010. The result shows that there exists a long term relationship between GDP and FDI. JEL Classification: F23 F43 C23 Key words: FDI GDP Co integration Time series

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References

1988Statistical analysis of cointegration vectors 1992Efficient Tests for an Autoregressive Unit Root 2003FDI and economic growth: the role of local financial markets 2009Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa 2008Pakistan Economic and Social Review 2011Impact of FDI on GDP: A Comparative Study of China and India

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2016Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis 2020Does Foreign Direct Investment Enhance Economic Growth? Evidence from 30 Leading Global Economies 2015Impact of Foreign Direct Investment on Economic Growth of Pakistan 2017Have the Special Economic Zones Succeeded in Attracting FDI?—Analysis for India

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